4 Common Money Mistakes Most Couples Make
Now that you’ve build a life together and have finally exchanged your vows, you don’t just ride off into the sunset and expect to live happily ever after. Sooner than you think, the inevitable reality of money and expenses will come into picture. Money is a sensitive topic and one of the reasons of conflicts among couples. Since we all want to avoid such conflicts with your spouse, here are the most common money mistakes and how to find your way around them.
1. Forgetting to Set a Budget
If you don’t typically set a budget, now is the time to create one. This should be done with a positive attitude. Sit down, discuss with your spouse and try to establish a household budget based on your joint income. Determine your expenses, track your purchases and find out if your combined income is enough for your expenditure. Smart budgeting lets you save up for your future—may it be travel plans or educational plans for your kids. Start a joint back account, then invest in stock market or pension plans. With a bit of research and foresight, you can earn extra money.
2. Lack of Transparency
People normally feel uncomfortable about divulging their state of finances, most likely because they don’t want to be judged. Ideally, you should first be aware of each other’s spending habits, financial beliefs and history before you decide to build a life with them. While you’re not married yet, make the extra effort to feel comfortable talking about your financial practices to avoid money-related problems in the future. Talk about your financial histories and responsibilities, make realistic goals and make sure to be transparent of your future expenses.
3. Piling on Debt
Financial experts say that using credit cards for necessities can wreak havoc to your budget. Why? Because most people spend at least 30 percent more when using a card. Carry some cash with you all the time for miscellaneous buys. With the easy-swipe nature of credit cards, it’s easy to rack up your debts when dining out, shopping and doing home improvements without you noticing it. Although purchasing on credit lets you pay bigger buys over a period of time, it can leave your expenditure unchecked.
4. Living Beyond Your Means
Keeping an eye on your spending and living within your means fortifies your financial position. Limiting and keeping track of expenses allows you to save more. It just all boils down to spending less than how much you earn. Keep track of your income and expenses as a couple to get an idea of your financial standing every month. Pinpoint where money is spend and try to cut down on non-essentials, like dining out too often or going on gourmet coffee dates.
Also, you might want to seek professional advice from investment experts. These pros can educate you to avoid making money mistakes as a couple.